State of the Industry

Louise Barnes: For planners, technology, including email and online resources, has changed the way we market events, communicate with attendees and clients, and execute logistics. Everyone registers on the Web and information is populated directly into a database. Also, companies and hotel chains like The Ritz-Carlton and Four Seasons have shown us that creating experiences really make a difference in building a brand.
Andy Anderson: Contracts are more consistent and hold the client financially responsible for delivering the committed room nights. Properties are considering ancillary group spending to a larger degree. Plus, companies have reduced spending and demand accountability from the hotels for product and service delivery.

AA: First and foremost, technology. Planners can easily check out a venue by just pulling up the property's website. We also have a greater number and type of locations catering to the industry. And, despite higher energy costs, airlines continue to keep prices relatively low for traveled booked far out.

AA: Integration of PMS and C&C systems, data mining capabilities, and revenue optimization systems. With Travel 2.0, it's possible for planners to reach out to an interactive community for feedback on the properties they are researching.

LB: They continue to leverage the Web effectively as a source for reaching clients. Many hotels focus on creating a unique experience for the client, offering a specific theme or service exclusive to their brand. For example, when Starwood realized business travelers arrive at their hotel tired, crash and then get up and go, they came up with the Heavenly Bed.

AA: From the hotel's perspective, it has increased security costs in most major cities and caused more companies to choose teleconferences whenever possible over a quick trip to meet within one city. In addition, airport security adds to a business person's day.

AA: Definitely. In 2005, approximately two thirds of all corporate meetings had less than 50 participants, and this trend is projected to continue into the foreseeable future. Another segment showing significant growth is the smaller social group of fewer than 10 rooms. More corporations are going toward having smaller more intimate meetings versus larger and less controllable.
LB: There are times when a smaller intimate event is the right thing for the audience, but the big events are very helpful when it comes to learning which vendors are available to service business needs as well as getting ideas and industry information all in one place. Still, to offer the most value for our attendees, we have to create smaller networking opportunities within larger events so that people can share information and ideas.

LB: We definitely feel the ball is in their court right now, which means we are paying more and that hotels are less flexible. To help leverage negotiations, we try to use hotels in a certain chain or group for a certain number of events, but that doesn't always work either. Some hotels are loosing relationships because of this. When the tide turns, we will continue to reach out to those who were willing to work with us and who continued to provide quality service.

AA: The key is to book early, consider group patterns that fit well with the desired property's need periods, highlight or commit to ancillary spend on non-room related activities and services, and, if all else fails, look beyond traditional locales to alternative destinations.

AA: Yes, most likely in 2008, as supply catches (or exceeds) demand in many locations. The business is very cyclical, so it's critical to take a long-term view when it comes to relationships.

AA: It has given greater power to planners, because it allows them book one chain for three to four meetings and obtain a greater discount because of the volume they are booking. On the other hand, they lose a property's individuality.
LB: Sometimes, as these chains get bigger, they become less willing to negotiate. It can make it easier to find a property, but other residual effects I have not found to be positive, such as lack of quality service.

LB: Planning has become more strategic, whether it's tracking spend, really thinking about what experience you want to create, or leveraging events for brand building and marketing. Planners are required to think more creatively and strategically than ever before.

LB: Well, I don't have either. I'm a member of MCAF (Meetings Competitive Advantage Forum). It's run by senior event professionals from 20 corporations across the U.S., and we get together three times a year to share ideas and best practices. Most planners I know and hire don't have the certifications you mention-and they are some of the best planners in the industry. I suggest getting training at a third-party event management company where you learn good processes, because that's what these companies do well. Then you take the knowledge and move over to the corporate side, where you can do the logistics in your sleep while thinking creatively and strategically about events and your firm's business needs.

AA: I see a continued pressure on rates and occupancy causing a flattening out due to the expected increase of additional rooms in the marketplace.
LB: We are spending a lot on events and with that comes a need to really show a value. Plus, we need to be careful not to saturate clients with too many events-people can only go to so many.

AA: It will continue to be strong as the need for personal interaction will likely never be replaced entirely by alternative forms of communication. In fact, it may grow as business realizes the value of promoting balanced lifestyles and more meeting attendees travel with loved ones.
LB: I think planners will use the web as a resource even more when searching sites, getting ideas and information, as well as for building communities, marketing and branding. Technology is going to continue to change they way we work and do things. We will continue to look for different ways to track ROI/ROO, and we will need technology to help us do that.